press release

San Jose, Calif., Dec. 8, 1999 -- SanDisk Corporation (NASDAQ:SNDK) announced today that PortalPlayer, Inc. will design support for SanDisk’s MultiMediaCard and forthcoming storage solutions from SanDisk into its Internet media delivery solution. The solid-state MultiMediaCards will serve as music storage cards in MP3 music players based on the PortalPlayer solution. The announcement, made at the Streaming Media Conference, is further confirmation of the momentum behind the MultiMediaCard and other products from SanDisk as popular removable storage devices for small, portable systems.

"Online delivery of music and other MP3-based audio via the internet is exploding", said Nelson Chan, senior vice president of marketing at SanDisk. "Most new MP3 player models use the MultiMediaCard. PortalPlayer’s complete end-to-end solution offers its OEM customers a pathway from today’s most popular internet music players to more advanced music players in the future. PortalPlayer’s complete end-to-end solution provides a very scalable and flexible architecture for OEM’s to produce advanced players that permit playback of downloadable digital media. We believe that PortalPlayer’s solutions will greatly accelerate the adoption of MultiMediaCards and future storage products in a variety of devices that playback audible content from the internet".

SanDisk’s MultiMediaCard is the world’s smallest removable flash data storage card. The postage stamp-sized memory card already has been designed into more than 40 recently introduced consumer electronics products in markets such as smart phones, digital video and internet music players. "We were impressed with SanDisk’s roadmap for combining advanced new features with higher density storage capabilities, all in a small, robust, and consumer-friendly form factor", said Suresh Bhaskaran, director of marketing at PortalPlayer. "There is a clear need to support both high capacity as well as small form factor for consumer electronic devices. SanDisk offers support for both in the form of the MultiMediaCard and other forthcoming products".

PortalPlayer’s MP3 end-to-end solution offers OEMs a single board design that can be used in a range of consumer products including portable MP3 players, home and automotive entertainment systems and cellular phones offering each with a full-featured set of MP3 audio capabilities. The solution will enable consumers to benefit from a one-stop online shopping experience that smoothly integrates their internet-connected PC with their portable MP3-enabled device. Content producers and distributors also benefit by gaining access to a growing infrastructure of connected and secure MP3-enabled devices.

SanDisk Corporation, the world’s largest supplier of flash data storage products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, CA.

About PortalPlayer

PortalPlayer, Inc., develops and markets to consumer electronics manufacturers complete end-to-end solutions for delivery and management of open and secure digital media with a focus today on MP3 players/recorders. Products include destination website applications, PC media management software, firmware, and semiconductors. The Company’s products support Internet-based delivery of multimedia content including music and other audio content, print and ultimately video materials to a variety of playback devices including portable MP3 players, home and automotive entertainment systems, and cellular phones.

Founded in June 1999, PortalPlayer is headquartered in Santa Clara, California with branch offices in Seattle, Washington and Hyderabad, India. The company has rapidly grown to more than 50 employees worldwide. PortalPlayer received its first round of funding from Chase Capital, Techfund, and FlatIron Partners.

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The matters discussed in this news release contain forward looking statements that are subject to certain risks and uncertainties as described under the caption "Factors That May Affect Future Results" in SanDisk’s annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. The company assumes no obligation to update the information in this release.

SanDisk’s web site home page address: http://www.sandisk.com/

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